TORONTO, ON--(Marketwired - July 19, 2016) - Gran Colombia Gold Corp. (TSX: GCM) (OTC PINK: TPRFF) announced today that it has received approval from the Toronto Stock Exchange (the "TSX") to commence normal course issuer bids for its Senior Unsecured Convertible Debentures due 2018 (the "2018 Debentures") and its Senior Secured Convertible Debentures due 2020 (the "2020 Debentures" and together the "Debentures"). The 2018 Debentures and 2020 Debentures currently trade on the TSX under the trading symbols GCM.DB.U and GCM.DB.V, respectively.

Under the terms of the bids the Company will have the right to purchase for cancellation up to a maximum of US$6,633,471 aggregate principal amount of 2018 Debentures and a maximum of US$9,629,597 aggregate principal amount of 2020 Debentures through the facilities of the TSX or alternative Canadian trading systems. This amount represents approximately 10% of the public float of the 2018 Debentures and 2020 Debentures, respectively, issued and outstanding as of July 11, 2016, determined in accordance with the applicable rules of the TSX. As of the date hereof, the aggregate principal amount issued and outstanding 2018 Debentures is US$63,742,176 and 2020 Debentures is US$103,294,350.

Management of the Company will determine the actual number of 2018 Debentures and 2020 Debentures that may be purchased and the timing of any such purchases, subject to compliance with applicable TSX rules. Daily purchases will be limited to US$17,154 principal amount of 2018 Debentures and US$12,279 principal amount of 2020 Debentures, other than block purchase exceptions. Purchases made pursuant to the bids will be made on the open market through the facilities of the TSX or other designated exchanges and published markets in Canada, and the price that the Company will pay for any such Debentures will be the market price at the time of the acquisition. The Company will not purchase Debentures when the market price per US$100 aggregate principal amount of Debentures exceeds US$100.

The Company is proposing to commence the bid on July 21, 2016, and have it remain open until the earlier of July 20, 2017 or the date on which the Company has purchased the maximum number of Debentures permitted under each bid. The Company has not purchased any 2018 Debentures or 2020 Debentures during the previous 12 months.

Under the terms of the indenture governing each of the Debentures, and as further described in such documents, the Company is required to set aside certain amounts of its excess free cash for repayment, repurchase or redemption of the Debentures. In accordance with each indenture, the Company is entitled and intends to use such funds for purchases of Debentures through the normal course issuer bids. The Company intends to make the bids because it believes: (i) that the 2018 Debentures and 2020 Debentures may be undervalued from time to time in relation to its current and future business prospects; (ii) that the purchase of Debentures though the bids is the best use of any excess free cash accumulated as per the terms of the indentures governing each of the Debentures and (iii) that Debentures may become available during the period of the bids at prices that would make the purchase of Debentures for cancellation an appropriate use of available funds and in the best interests of the Company and its shareholders.

Production Update

The Company also announced today that it produced a total of 38,229 ounces of gold in the second quarter of 2016, up 21% from the first quarter of this year and up 34% from the second quarter a year ago. This brings the total production for the first half of 2016 to 69,718 ounces of gold, up 33% over the first half of 2015. The Company remains on track with its production guidance for 2016 of a total of 120,000 to 138,000 ounces for the full year.

At the Segovia Operations, second quarter 2016 gold production totalled 31,884 ounces, up 23% from the first quarter of 2016 and up 41% from the second quarter a year ago. Gran Colombia processed an average of 771 tonnes per day ("tpd") with head grades averaging 13.8 g/t at Segovia in the second quarter of 2016, an improvement from 730 tpd at an average head grade of 12.9 g/t in the first quarter of 2016 and 534 tpd at head grades averaging 15.5 g/t in the second quarter a year ago. Improved mill recovery was also a factor in the increased gold production in the second quarter of 2016. For the first half of 2016, gold production at the Segovia Operations totalled 57,883 ounces, up 41% from the first half last year. Gran Colombia expects to produce a total of 96,000 to 110,000 at its Segovia Operations for the full year 2016.

At the Marmato Operations, tonnes processed increased by 19% in the second quarter of 2016, compared with the first quarter this year, to 987 tpd with head grades averaging 2.6 g/t. This resulted in gold production of 6,345 ounces in the second quarter of 2016, up 16% from the first quarter of 2016 and up 7% from the second quarter a year ago. For the first half of 2016, gold production at the Marmato Operations totalled 11,835 ounces, up 4% from the first half last year. Gran Colombia expects to produce a total of 24,000 to 28,000 at its Marmato Operations for the full year 2016.

Q2 2016 Results Webcast

The Company announced today that it will release its financial results for the second quarter of 2016 after market close on Thursday, August 11, 2016 and will host a conference call and webcast on Friday, August 12, 2016 at 9:30 a.m. Eastern Time to discuss the results.

A replay of the webcast will be available at www.grancolombiagold.com from Friday, August 12, 2016 until Sunday, September 11, 2016.

About Gran Colombia Gold Corp.

Gran Colombia is a Canadian-based gold and silver exploration, development and production company with its primary focus in Colombia. Gran Colombia is currently the largest underground gold and silver producer in Colombia with several underground mines in operation at its Segovia and Marmato Operations. Gran Colombia is in the midst of an expansion and modernization project at its Segovia Operations.

This news release contains "forward-looking information". Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gran Colombia to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements are described under the caption "Risk Factors" in the Company's Annual Information Form dated as of March 30, 2016, which is available for view on SEDAR at www.sedar.com. Forward-looking statements contained herein are made as of the date of this press release and Gran Colombia disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.